Skyworks Solutions, Inc. (SWKS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Micron Technology, Inc.

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Monolithic Power Systems, Inc.

GLOBALFOUNDRIES, Inc.

TE Connectivity Ltd.

Skyworks Solutions, Inc.

Enphase Energy, Inc.

ON Semiconductor Corp.

Why is Skyworks Solutions, Inc. ?

High Management Efficiency with a high ROCE of 22.68%

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate -17.54% of over the last 5 years

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at USD 1,319.1 MM
ROCE(HY) Lowest at 6.49%
NET PROFIT(Q) At USD 87.43 MM has Fallen at -46.48%

With ROCE of 8.73%, it has a fair valuation with a 1.47 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -19.79%, its profits have fallen by -36.7%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -19.79% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Skyworks Solutions, Inc. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Skyworks Solutions, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Skyworks Solutions, Inc.

-18.59%

-0.90

45.22%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.42%

EBIT Growth (5y)

-17.54%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.23

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

0.60

Tax Ratio

14.96%

Dividend Payout Ratio

91.35%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

22.68%

ROE (avg)

19.55%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.42

EV to EBIT

16.81

EV to EBITDA

8.33

EV to Capital Employed

1.47

EV to Sales

1.89

PEG Ratio

Dividend Yield

5.55%

ROCE (Latest)

8.73%

ROE (Latest)

7.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 134.93%

INVENTORY TURNOVER RATIO(HY)

Highest at 3.25 times

DEBTORS TURNOVER RATIO(HY)

Highest at 8.83 times

DIVIDEND PER SHARE(HY)

Highest at USD 8.83

RAW MATERIAL COST(Y)

Fallen by 0.25% (YoY

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 1,319.1 MM

ROCE(HY)

Lowest at 6.49%

NET PROFIT(Q)

At USD 87.43 MM has Fallen at -46.48%

PRE-TAX PROFIT(Q)

Fallen at -36.93%

Here's what is working for Skyworks Solutions, Inc.

Inventory Turnover Ratio

Highest at 3.25 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 8.83 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at USD 8.83 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 134.93% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.25% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 117.4 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Skyworks Solutions, Inc.

Operating Cash Flow

Lowest at USD 1,319.1 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Profit

At USD 87.43 MM has Fallen at -46.48%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Pre-Tax Profit

Fallen at -36.93%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)